Law360, New York (February 21, 2012, 1:39 PM ET) -- The U.S. Securities and Exchange Commission (SEC) recently issued guidance for public companies about their disclosure obligations for cyber-security risks and cyber incidents. The SEC strongly advised companies to consider disclosure of specific cyber risk factors, potential related costs and a “description of relevant insurance coverage.”

The SEC’s guidance will undoubtedly draw increased executive-level attention to the types of insurance that coverage companies maintain — if any — for cyber-security events, such as the loss of private customer information through a data breach. Insurance companies may...